Wed | May 22, 2019

IMF weighs in on Chinese currency

Published:Friday | July 30, 2010 | 12:00 AM

The International Monetary Fund said China's yuan is undervalued, in a mildly worded assessment on Wednesday of its controversial currency controls, and praised Beijing's response to the global crisis.

The comments came in a review by the Washington-based fund of Chinese economic policy, the first in three years. Such reviews usually are annual, but the process was postponed due to disagreements with Beijing.

The IMF said several members of its board "agreed that the exchange rate is undervalued" but gave no details. The 24-member board includes the United States, China, several other individual governments and members that represent groups of economies.

Beijing held the yuan steady against the dollar beginning in late 2008 to help China's exporters compete amid weak global demand. Washington and other trading partners complain that the exchange control has hurt their companies and some US lawmakers demanded sanctions on Chinese goods.